Karl Leo, Herb Hester, Phil Hunniford, Arm, Ltd., and Caye Home Furnishings

A lawsuit was filed against the defendants alleging that, as fiduciaries of the Employee Welfare Benefit Plan for Heath Home Furnishings, they failed to make proper remittances or pay health insurance benefits despite continuing to represent that the plan was solvent to employees. The lawsuit was filed on behalf of a class of former employees or beneficiaries of the groups Healthcare or Retirement Plans who paid for or incurred indebtedness for services or expenses covered by the plan that were not reimbursed or repaid. The U.S. District Court for the Northern District of Mississippi, Western Division has awarded the plaintiffs a $2.3 million settlement. (Aug-24-06)

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